House Bill No. 379, introduced by Representative Wright, amends existing property insurance laws in Louisiana to establish conditions under which mandatory binding arbitration can be required. The bill modifies R.S. 22:868 by allowing exceptions to the prohibition against requiring insurance contracts to be governed by the laws of another state, specifically for arbitration purposes. It introduces a new section, R.S. 22:868.1, which outlines that insurers cannot mandate arbitration unless specific criteria are met, including the requirement for a separate endorsement in the policy, a premium discount for arbitration, and a signed acknowledgment from the policyholder regarding the rights they forfeit by choosing arbitration.

The proposed law also stipulates that arbitration must occur within the state at a location corresponding to the policyholder's premises and that the arbitrator must be a licensed attorney in Louisiana. Additionally, the arbitrator is empowered to issue judgments that may include penalties and attorney fees. The bill ensures that arbitration is governed by the Louisiana Binding Arbitration Law and allows the commissioner of insurance to create rules for its implementation. Overall, the legislation aims to provide a structured approach to arbitration in property insurance while safeguarding policyholder rights.

Statutes affected:
HB379 Original: 22:868(A)
HB379 Engrossed: 22:868(A)